Fiscal Uncertainty Chips Away at U.S. Prestige

Dysfunction Is Limiting U.S. Position Abroad, Observers Say; 'Sadness From Our Trading Partners'

WASHINGTON—As the world's pre-eminent economic power, the U.S. has been the cornerstone of the global financial system since World War II. Now, observers say that prestige may have been badly dented by Washington's latest display of fiscal dysfunction, limiting the U.S.'s ability to get things done abroad.

Laurence Fink, chief executive of the world's largest asset manager, New York-based BlackRock Inc., said Friday that he...